The businessman offered to involve international advisers for independent evaluation.
The information about the debt of the owner of agricultural holding Ukrlandforming and Avangard Oleg Bakhmatyuk in the amount of 29.3 billion UAH before the state is untrue and is a manipulation.
Debate is rife in the media space about whether or not the stabilization credit extended to VAB Bank in October 2014 was legitimate. Did the National Bank follow proper procedures when issuing credit? Was sufficient collateral provided? Were the funds provided to the bank embezzled?
-We will answer these and other topical questions about the high-profile case of VAB Bank as well as explain why the decision to extend credit to this bank was legitimate and justified.
- Why were funds extended to VAB Bank?
The National Bank is a last-resort creditor for banks. When a bank has exhausted all options to replenishing its liquidity, the owners apply to the NBU, whose task in this situation is to ensure financial stability.
In 2014, when crisis struck Ukraine and depositors staged a run on banks, “whether or not refinancing should be provided” was not even a question. Borrowers were unable to repay loans and banks had a hard time repaying deposits. VAB Bank was no exception. Overall in 2014, VAB Bank received UAH 3 billion worth of credit, including UAH 1.2 billion in October.
- Did the National Bank follow proper procedures when issuing the stabilization credit?
It did. The NBU specified the intended purpose of the funding as payouts to depositors. The NBU did not detect any spending of funds for purposes other than those intended.
What was the credit collateral?
To provide collateral, VAB Bank owner Oleg Bakhmatiuk signed a personal pledge agreement with the NBU, pledging all of his wealth and assets. The NBU has a total of UAH 8.6 billion worth of pledge agreements with Bakhmatiuk.
Also, Stanislaw Trading Company controlled by him pledged its real estate in Ivano-Frankivsk. An independent appraiser valued it at UAH 1.2 billion.
- Were funds stolen from VAB Bank?
The funds were directed toward payouts to depositors. All funds were used to make payouts to 80,000 depositors over the course of 18 days. The bank paid out more than UAH 100 million on a daily basis.
- What is the NBU doing to recover the funds?
Oleg Bakhmatiuk owes UAH 10.6 billion to the National Bank through two of his banks. The NBU has UAH 8.6 billion worth of personal pledges from Bakhmatiuk as well as pledges of his companies guaranteeing repayment of this debt.
Since the businessman had not transferred a single penny of his own money to repay his debts, in 2015 the National Bank filed more than 50 claims in courts against him and his companies.
There are 19 court rulings in favor of the NBU, which have taken effect in respect of Financial Initiative, and not a single court ruling that has taken effect against VAB Bank. However, even the 19 victories in court have failed to ensure debt recovery: the State Enforcement Service is dragging its feet on selling the assets.